How Consumer Demands Have Forced the Financial Industry to Turn to Tech
The consumer gets what the consumer wants – but it’s not only the consumer that is influencing what drives the financial services industry.
What the consumer wants, the consumer gets – but it’s not only the consumer that is influencing what drives the financial industry.
Over the past few years, regulatory pressures have also increased to ensure that investors are treated fairly, receive appropriate products and services, are given appropriate advice and charged fees that are transparent and fair.
Investors, too, are interested in products and services that are tailored to their needs; this trend is visible in other industries as well, not just financial services. There is a need for companies to understand their investors in order to deliver suitable products and services through channels that are appropriate for the investors. Many companies are focusing more on customer-centric strategies, in order to build deep, authentic and long-lasting relationships with investors.
This has led to an increase in the adoption of analytics models by many, in order to understand their customers better. These models (amongst other various uses) are used to understand investor’s buying patterns, behavior and lifetime value. Other companies are also studying the behavior patterns of advisers as well, to gauge the loyalty of these advisers towards their brand.
Technology is sewn into the fabric of our lives; as a result, companies need to provide agile and innovative platforms, which are suitable for a wider range of users. There has been an increased trend in the adoption Omni-channel approach by many, to allow investors to move seamlessly across multiple channels.
As investors become better informed, with greater access to information, financial advisers need to add value beyond investment. Investment platforms need to help these advisers to stay relevant in this ever-changing marketplace.